Is Gravity Co profitable in 2026?

Yes. Gravity's FY2025 net income was KRW 67,309 million, down from KRW 84,902 million in FY2024, on consolidated revenue of KRW 560,547 million versus KRW 500,845 million a year earlier, per its March 2026 filing. It remains profitable but margins compressed year over year.

Who owns Gravity Co, the Ragnarok Online maker?

Japan's GungHo Online Entertainment (maker of Puzzle & Dragons) controls approximately 59.3% of Gravity as of April 2026, having first acquired a 52.4% stake in February 2008. Activist fund Strategic Capital has pressured GungHo's board since 2024-2025 over capital allocation.

Could AI replace Gravity Co's game development?

Unlikely to replace its core value. Gravity's moat is a legally exclusive Ragnarok Online license extended to 2063 with acquired copyright over storyline and characters as of September 2024, plus regional distribution rights across 91 markets, none of which generative AI can replicate.

Who is Gravity Co's biggest competitor?

In Korea's MMORPG market, NCsoft, Netmarble, and Nexon are the largest rivals; Netmarble's title Vampir overtook Lineage M for Korea's top Google Play revenue spot in 2025, and Nexon ranked No.1 among Korean mobile publishers by sales in H2 2025, per Chosun Biz reporting.

Will GungHo take Gravity Co private?

Not yet confirmed as of mid-2026. A May 7, 2026 third-party analysis (arpoadorinvest) flagged the risk given Gravity's large cash hoard and no dividend policy, but no formal tender offer had been announced; GungHo instead adopted a new director-pay framework tied to profit and TSR in January 2026.

How many employees does Gravity Co have?

Macrotrends, based on public filings, shows the core Gravity Co entity at roughly 400-464 employees between 2022 and 2024. Workforce data vendor Revelio Labs estimates the wider global group, including overseas subsidiaries, at about 1,247 employees as of December 2025.

Gaming companies · subsidiary of GungHo Online Entertainment, Inc. (TSE: 3765) · South Korea

Gravity Co.

gravity.co.kr ↗

South Korean maker of Ragnarok Online, running one of Asia's longest-running MMORPG franchises.

Defensible for now

Assessed 23 July 2026 · Evidence as of 23 July 2026

Real protection, with named pressure against it.

On the recordSince 23 July 2026 · Checkable from Q4 2026 · Every call on the record Checkpoint: Ragnarok Online 3 China launch, a key test of franchise demand

The call

Gravity's Ragnarok franchise and cash pile keep the business itself stable, while the bigger open question is what GungHo does with its majority stake.

Gravity Co. creates and runs online games, most famously Ragnarok, and owns the rights to that game until 2063, which means no competitor can simply copy it. The company has plenty of cash (around $440-460 million) relative to its market value, so it will not run out of money. The real danger is not that rivals or artificial intelligence will overtake the games, but that the majority owner GungHo might force out the smaller shareholders by buying them out at a low price, which would hurt people who own Gravity stock but do not control the company.

Why

AI pressure: None apparent. No AI product targets Ragnarok's playerbase; generative tools could someday cut costs for new MMORPG rivals, but that is not visible yet. Could AI do the core job? Unlikely.

Bigger players: GungHo Online Entertainment (majority owner, ~59.3% control). GungHo controls the company and faces activist pressure over cash use; analysts flag a possible tender offer that would squeeze out minority shareholders. Could a giant copy it? No, they are blocked.

What protects it. Ragnarok copyright locked through 2063 plus $440-460M cash against a $430-470M market cap gives the company years of runway.

What would change this call

Ragnarok Online 3 China launch results in Q4 2026. Strong uptake would show franchise strength; a flop would signal fatigue against newer rivals.
GungHo announces a formal tender offer for Gravity's minority NASDAQ shares. Would confirm the take-private risk flagged by analysts and end public minority ownership.
Gravity's Q2 2026 earnings (expected ~Aug 7, 2026) revenue trend versus NCsoft's Aion 2 and Netmarble's Vampir launches. Would show whether new Korean MMORPG competitors are drawing players away from Ragnarok titles.

Key numbers

Cash of $440-460M vs market cap $430-470M (2026-05)
GungHo holds ~59.3% of Gravity shares (2026-04-25)
FY2025 revenue KRW 560.5bn, up from KRW 500.8bn (2026-03-06)

Named risks

GungHo take-under or squeeze-out of Gravity's minority Nasdaq shares. Severity: high
Revenue volatility tied to hit-driven title launches, roughly 30% swing 2023 to 2024 per estimate. Severity: medium
Regulatory scrutiny of loot-box probability disclosures after April 2025 FTC fine. Severity: medium
Ragnarok Online 3 China launch in Q4 2026 could underperform amid franchise fatigue. Severity: medium
Competitive launches from NCsoft, Netmarble, Nexon pressuring Korean player attention. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
NCsoft	contesting	Launched Aion 2 in November 2025 to defend Korean MMORPG market share
Netmarble	losing to	Netmarble's Vampir overtook Lineage M for Korea's No.1 Google Play revenue in 2025
Nexon	losing to	Ranked No.1 among Korean mobile publishers by sales in H2 2025 per Chosun Biz
imcGAMES	contesting	Founded by original Ragnarok creator Hakkyu Kim after leaving Gravity in 2003
Kakao Games	contesting	Odin: Valhalla Rising has disrupted mobile MMORPG rankings since 2021

Questions people ask

Is Gravity Co profitable in 2026?: Yes. Gravity's FY2025 net income was KRW 67,309 million, down from KRW 84,902 million in FY2024, on consolidated revenue of KRW 560,547 million versus KRW 500,845 million a year earlier, per its March 2026 filing. It remains profitable but margins compressed year over year.
Who owns Gravity Co, the Ragnarok Online maker?: Japan's GungHo Online Entertainment (maker of Puzzle & Dragons) controls approximately 59.3% of Gravity as of April 2026, having first acquired a 52.4% stake in February 2008. Activist fund Strategic Capital has pressured GungHo's board since 2024-2025 over capital allocation.
Could AI replace Gravity Co's game development?: Unlikely to replace its core value. Gravity's moat is a legally exclusive Ragnarok Online license extended to 2063 with acquired copyright over storyline and characters as of September 2024, plus regional distribution rights across 91 markets, none of which generative AI can replicate.
Who is Gravity Co's biggest competitor?: In Korea's MMORPG market, NCsoft, Netmarble, and Nexon are the largest rivals; Netmarble's title Vampir overtook Lineage M for Korea's top Google Play revenue spot in 2025, and Nexon ranked No.1 among Korean mobile publishers by sales in H2 2025, per Chosun Biz reporting.
Will GungHo take Gravity Co private?: Not yet confirmed as of mid-2026. A May 7, 2026 third-party analysis (arpoadorinvest) flagged the risk given Gravity's large cash hoard and no dividend policy, but no formal tender offer had been announced; GungHo instead adopted a new director-pay framework tied to profit and TSR in January 2026.
How many employees does Gravity Co have?: Macrotrends, based on public filings, shows the core Gravity Co entity at roughly 400-464 employees between 2022 and 2024. Workforce data vendor Revelio Labs estimates the wider global group, including overseas subsidiaries, at about 1,247 employees as of December 2025.

Timeline

2026-05-07Analyst commentary flags GungHo take-under risk over Gravity's unused cash hoard
2026-04-25Report cites GungHo's ~59.3% Gravity stake and Jan 2026 director-pay reform
2026-03-06Gravity reports FY2025 revenue KRW 560,547M, net income KRW 67,309M
2026-02-13Gravity discloses ~$440-460M cash, RO3 China launch set for Q4 2026
2026-01GungHo adopts director-pay framework tied to profit and TSR
2025-11-07Q3 2025 revenue KRW 138,894M, up 8.2% YoY, online-game revenue up 32.1%
2025-09-24GungHo shareholders reject activist proposal to remove CEO Morishita
2025-04-20Korea FTC fines Gravity and WeMade over loot-box probability disclosures
2024-09Gravity extends Ragnarok license to 2063 and acquires storyline copyright
2008-02GungHo Online Entertainment acquires 52.4% stake in Gravity

Revision history

23 July 2026

First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.

In the same band

Kingsoft Corporation Guerrilla Games Behaviour Interactive